"Further improvement" is needed by banks on liquidity management, in the view of the prudential regulator. Given this, it's of interest to survey disclosures from three banks during last week's profit season. The Basel III liquidity framework involves two new minimum global standards: a 30-day Liquidity Coverage Ratio, to address an acute stress scenario; and a Net Stable Funding Ratio, to encourage longer-term funding resilience. The NSFR is still being reviewed by the Basel Committee on Banking Supervision.The ratio is intended to address longer-term liquidity mismatches covering the entire balance sheet, and will provide incentives for banks to use stable sources of funding. However, no minimum standard has been set for the NSFR, and it will not come into effect until January 1, 2018, if it ever does.With no minimum standard set, it is hard to tell how the major banks are preparing for its implementation, or whether they are even particularly concerned.APRA quarterly data for the four major banks shows that short-term funding (funding with a maturity of less than one year) as a proportion of total funding overall had fallen to 15.5 per cent at the end of June 2013, from a peak of 23.1 per cent at the end of September 2008. The decline has been reasonably consistent over this period, suggesting that the major banks are seeking to reduce the short term component of their total funding.However, we know that APRA does hold concerns. In its 2013 annual report, released last week, it said "further improvement is necessary" in liquidity management, even taking into account improvements by banks over the last year.ANZ highlighted the stability of its funding mix in its results presentation last Tuesday. Short-term funding comprised 18 per cent of total funding at the end of September.This was down marginally from 19 per cent the year before, but, more significantly, it was down from 29 per cent at the end of September 2008. In National Australia Bank's results presentation on Thursday, the subject really didn't feature. But, from the information provided, it was possible to work out that short-term funding accounted for 13.2 per cent of total funding. With this ratio being below the average for the four major banks, perhaps NAB felt it didn't need to say anything. But it may have missed an opportunity to crow.Macquarie Bank on the other hand, may not care much. In its investor presentation on Friday, it disclosed that its mix of short-term funding to total funding has increased to 23 per cent, from 18 per cent 12 months earlier. However, Macquarie raised A$7.9 billion of term funding over the last half.Patrick Upfold, the bank's chief financial officer, said the bank was "very well placed to meet the net stable funding ratio requirements.""We effectively fund our obligations 12 months before they fall due and we have minimal reliance on wholesale funding markets, and this approach means that we're very well placed to satisfy the LCR requirements."It will be interesting to see what Westpac has to say when